Zero costs

Information transferred from previous system has some items at a zero cost (use average cost method). Reports are not reflecting true contribution margin. How can the average cost be entered?

When the items were Item Journaled (Adjusted) into inventory a cost should have been placed on the journal. This would create an item ledger entry showing the cost of the item. This would have given the item an average cost. To fix this make note of the quantity on hand for all the items. Adjust the items out of inventory. Now adjust the items back into inventory but this time put the cost of the item into the jounal line field called unit cost. Average costing for this item will resume when you post your next purchase for it and the initial cost you entered will be taken into consideration for invntory valuation. Hope this helps. KEVIN A ARCHER